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Wednesday, March 9, 2011

Major players in Alabama have large sums in DROP program

The following is a list of the people with the top 50 balances in the DROP program or Deferred Retirement Option Program. The Alabama Senate voted on Tuesday to kill the program and the House could vote on its version as early as Thursday. The name of the officials are followed by their balance in the program.

18 Comments:

Anonymous said...

My understanding that if someone has signed a contract already with the drop program... their entitled to it even if the drop program is Voted out? Unless legislation is able to VOID all contracts this is nothing but, a whitewash deal as usual?

The DROP program was intiently to GIVE and KEEP qualified teachers and state employees an incentive to stay but, with all good intentions given... The Highly paid and compensated individuals were able to hijack a much needed incentive to keep underpaid individuakls from going into the Private sector of buisness and or moving to higher paying postions in neighboring states. If legislation cancels this program... it will be a loss for the people of Alabama... maybe a compromise is in order? Highly compensated individuals should be excluded from this benefit and incentive... and for legislation to inact a top $100,000 for all who have enrolled in the program contract for 3 years tobe paid no more and no less... Now $100.000 is a GREAT Incenetive for your average state employee and for people in the education system... all other contracts who are presently enrolled in the drop program if not completed should have this Implemented as a TOP payout! Not based on their high salaries as shown above over a 3 year period but, a FLAT payment beneficial to ALL!

I think that just because a teacher has been teaching for a while does not mean they are better than a newer teacher! Eliminating the DROP program could save the state a lot of money and possibly a lot of jobs for state employees that have just finished college and are trying to raise a family and start a career, something that most people in the DROP program have already had the chance to do!

All this goes to show is that people in power who make a lot of money can and do abuse the system. This does not however, show all of the people who have worked hard their entire careers and are of value to the State, be able to save and build a descent retirement. Shame on the media for once again only showing the most extreme examples and not the Whole story!!

they forget to mention that the money for this doesnt come out of the state budget. Its just a big dog and pony show to look like soemthing is being done, not to mention a possible retribution play against AEA for supporting bradley byrne.

The Drop Program is intended to given on a case by case basis to those whole have necessary or hard to obtain skills that are of value to the State. It was never intended, nor is it given to everyone who wants to get in it. I, like you, see way to many politically tied individuals in that list but that doesn't mean that it is a bad program. It just needs to be fixed. Here is why . . .

The State has a difficult time attracting certain highly skilled jobs. For example, Doctors, Nurses, experienced software architects and developers, certain engineering fields, Microbiologists, etc. The reasons for this are; first, these people are in short supply and the state competes with the Private sector for them; second, working for the state has an unfair stigma attached to it that is propogated by the 'State Worker Stereotype'; last, the state pays a paltry starting salary that is well below the Private sector wages for the same job. When the State Personnel Department compares salaries they compare themselves to other southeastern states, NOT the private sector companies right down the street!

The skilled workers that the State does attract come because of the benefits - more time off, reasonable health coverage at an attractive price, and the pension. I fear that if we make the benefits less attractive government will no longer be able to attract the necessary skills to provide the services that we all need and demand for our tax dollars.

Maybe it would be possible to identify the hard to attract, essential skilled people we need and offer those people the perks necessary to attract them to state service and either reduce or eliminate those perks for those in lesser demand. Regardless, you can not run a company or a government with subpar talent and that means the state must offer something to attract them. It's really pretty simple.

There are currently about 8,500 DROP Accounts. When you look at the top 50 accounts you are looking at less than 1 percent of the total. While these 50 have large balances, which is because they have worked many years and receive large salaries, there are another 8,450 DROP members who have much more modest DROP Acount Balances and benefit greatly from this program. If the State must end DROP because there is not enough money to fund it, so be it!But quit demonizing the people who participated in the program.

This is why the schools are closing because of the inadequate facilities and funding not provided appropriately! These top 50 people are accumulating money while our state schools are suffering in the process. Southlawn Middle School in Montgomery has not air condition in its gym, other area schools have not been updated as they should have been, while other schools have been built across town to accommodate those children......This is unfair, more money should be going to our school systems.

Just exactly *why* is the DROP program going broke? I would like to know if, during the boom years before the recession, the State contributed the amounts it was supposed to to these accounts? A lot of defined contribution pensions accounts that go broke, do so because the companies think they'll last forever so they don't put in their share of the money. Then hard times roll around and the funds don't have enough in them... the employees have made their full contributions, but the companies have stiffed them of the rest!

When I saw the front page of the Advertiser this morning, I wondered if this story might be the coup de grâce for Hubbard and Reed. First they back the wrong candidate, then they lose control of the Legislature and now the rank and file get to see how the AEA leadership have created their platinum parachutes on the backs of the classroom teacher. My guess is there will be many current AEA members who realize they need to put their money into an IRA rather into AEA membership dues!

Got a recording on my phone by Paul Hubbert stating AEA was now supporting a way to fund DROP w/o State funds. Didn't say from where but would be surprised if AEA contributed any $$. Greed and abuse of power is ruining this country. I laugh when I read newspaper articles about corruption in other countries in the Middle Ease; we need to take care of our own first - they're laugh at us for our hipocracy. Thanks to the Watchdog groups & prosecutors that go after these thieves.

The DROP program is, in essence, the ultimate "double-dipping" scheme of all because the participants continue to draw their regular salary while the amount they would have received each month in a retirement check is deposited into an interest bearing account for them (i.e. DROP program).The easiest way to solve this is to enforce the law! The DROP program, as enacted by the legislature 10 years ago, states that an individual may enter the DROP program (in lieu of retiring)for a defined period of time (3-5 years). At the end of the defined period of time the individual will retire from state service. As it currently stands many of those in the DROP program do not leave state service after the defined period of time which greatly enhances the amount of money they have accumulated in the DROP program.

The DROP program should NEVER have happened. However, since it did, now those that have completed their year (3-5) should be given a choice--either retire or put all of that earmarked money back into the system. My thoughts.

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South Union Street is the blog of Montgomery Advertiser political reporters Markeshia Ricks and Sebastian Kitchen. Always check here for the latest on the Legislature, elections and other activities and players in Alabama.